Legal disclaimer This presentation has been prepared to inform - - PowerPoint PPT Presentation

2

This presentation has been prepared to inform investment professionals about Speedy Hire Plc (‘Speedy’), and does not constitute an offer of securities or otherwise constitute an invitation or inducement to any person to underwrite, subscribe for

• r otherwise acquire securities in Speedy or any of its

subsidiary companies.

The presentation and information communicated verbally to you may contain projections and other forward-looking statements that are necessarily subject to risks and uncertainties, because they relate to future events. Our business and operations are subject to a variety of risks and uncertainties, many of which are beyond our control and, consequently, actual results may differ materially from those expressed or implied by any forward- looking statements and projections. Although Speedy currently believes that the assumptions underlying these forward-looking statements are reasonable, any

• f the assumptions could prove inaccurate or incorrect and

therefore can be no assurance that any results contemplated in the forward-looking statements will actually be achieved.

Legal disclaimer

Nothing contained within this presentation or communicated verbally should be construed as a profit forecast or profit

• estimate. Speedy undertakes no obligation to publicly update or

revise any forward-looking statement, whether as a result of new information, future events or otherwise. Some of the factors which may adversely impact some of these forward-looking statements are discussed in Speedy’s audited results for the year ended 31 March 2013 under “Principal risks and uncertainties”. This presentation contains supplemental non-GAAP financial and

• perating information that Speedy believes provides useful

insight into the performance of the business. Whilst this information is considered as important, it should be viewed as supplemental to Speedy’s financial results prepared in accordance with International Financial Reporting Standards and not as a substitute for them.

3

• Financial Performance – Lynn Krige, Group Finance Director
• Delivering on a Consistent Strategy – Steve Corcoran, Chief Executive
• Question and Answer Session

Results presentation

Agenda

5

Another year of continued progress

Financial highlights

Financial year ended 31 March 2013 £m 2012** £m Change Revenue 340.4 326.4 up 4.3% EBITDA* 73.5 62.6 up 17.4%

EBITDA % 21.6% 19.2%

EBITA* 24.4 19.7 up 23.9%

EBITA % 7.2% 6.0%

PBT* 16.8 12.4 up 35.5% Adjusted earnings per share* 2.39p 1.72p up 39.0% Dividend per share 0.53p 0.46p up 15.2%

* Pre amortisation and exceptional costs ** FY12 data excludes the disposed accommodation operations and is before exceptional items

6

Strong balance sheet – fit for the future

Financial position

As at 31 March 2013 £m 2012 £m Change Property, plant & equipment 242.0 241.0 0.4% Debtor days – UK & Ireland 61.3 days 65.3 days 4 days Bad debt charge as a % of revenue 1.30% 1.70% Net debt 72.4 76.3

• 5.1%

Gearing 30.6% 33.2% Net debt: EBITDA* 0.99x 1.21x Shareholders’ funds 237.0 229.5 3.3% Net asset value per share 45.8p 44.4p 3.2% ROCE 7.9% 6.0%

* Pre exceptional costs

7

Improving quality of earnings drives margin growth

UK & Ireland

Financial year ended 31 March 2013 £m 2012** £m Change Revenue 321.4 315.3 1.9% EBITDA* 73.8 65.7 12.3%

EBITDA % 23.0% 20.8%

EBITA* 31.2 27.9 12.2%

EBITA % 9.7% 8.8%

NBV of property, plant & equipment 183.3 185.8 1.3% Net capital expenditure 33.8 41.6 19.0% Depreciation 42.6 38.5 10.6% Average age of hire fleet (years) 4.2 4.2

* Pre amortisation and exceptional costs ** FY12 data excludes the disposed accommodation operations

FY12 FY13 FY12 FY13

EBITDA* margin EBITA* margin

8

Secured contracts underpin long-term growth

International

Financial year ended 31 March 2013 £m 2012 £m Change Revenue 19.0 11.1 71.2% EBITDA* 5.5 2.5 120.0%

EBITDA % 28.9% 22.5%

EBITA* 0.8 (0.7) n/a

EBITA % 4.2% (6.3%)

NBV of property, plant & equipment 31.2 24.5 27.3% Net capital expenditure 15.8 9.8 61.2% Depreciation 4.7 3.2 46.9% Average age of hire fleet (years) 1.8 2.3 n/a

* Pre amortisation and exceptional costs

FY12 FY13 FY12 FY13

9

Our strategy in action

Number of depots Number of vehicles Number of employees Revenue Proactive management action driving improvements in financial performance

10

On-going improvement in Group cash flow enabling self-funded investment

Cash flow

76.3 59.0 72.4

1.0 42.5 10.0 0.4 10.2 2.9 16.5 62.7 18.7 5.2 0.8 10 20 30 40 50 60 70 80 90 Movement in net debt (£m) Group, excluding International International Cash generation Cash investment

11

• Focus on the right clients, sectors and contracts driving higher quality and longer term revenues
• Operational efficiencies drive increased operating margin
• £59.0m investment in hire fleet, fully funded from Group cash flow
• Strong balance sheet fit for the future
• On-going improvements in ROCE toward 10% target

Growing sustainable profit

2013 in conclusion

13

Our approach

Delivering on a consistent strategy

* Excluding International

Growing sustainable profit:

Utilisation of UK Hire fleet up 2.5% ROCE - up to 7.9% from 6.0%, on a 12 month rolling basis EBITA - increased to £16.8m, from £12.4m; up 35.5%

14

Winning market share, with the right clients, in our target markets

Right clients, right markets

Speedy Revenue FY13 v FY12, Revenue % Change

UK Construction Revenue in Context

Source: Management Information * Source: Construction Products Association (January 2013) ** Source: Construction News

*

Speedy Construction Revenue % Change FY13/FY12 Construction Market (CPA*) 2012/2011 Speedy Revenue with CN** Top 10 FY13/FY12 Speedy Revenue with CN** Top 50 FY13/FY12

Revenue Growth From Target Markets

15

A more balanced portfolio of income

Managing revenue: clear market & client focus

• Growth in Infrastructure, Industrial and Other markets (primarily Events)
• Progressive drive into Infrastructure and Industrial since 2010
• Construction remains a key market at 49% - growth with the Top 10
• Non-Construction now accounts for 51% of Group revenue

FY12 Group Revenue Split FY13 Group Revenue Split

16

Speedy is increasingly a services company, not just a hire company

Right proposition - managing client risk

A service, not a supply model

17

Right proposition - a differentiated approach

An Integrated Service proposition: optimising assets, reducing risk and enabling delivery

• Service based: built around the hired asset, not just hire supply
• A flexible, evolving menu: provides bespoke solutions to assist varying needs of clients
• Partnership approach: built on added value and whole life costing, not just on the hire rate
• Greater control: improved supply chain; quality standards and compliance management
• Safe, sustainable and innovative focus

Highly attractive to volume users and Infrastructure/Industrial clients

18

Sustainable growth - how we are achieving it

Growth from:

• Securing new and developing existing revenues in chosen markets
• 28% revenue is now from service based income
• Increasing presence in international oil & gas
• Maintaining market leadership

Thames Water Costain ZADCO Oil & Gas projects:

• Baker Hughes
• Schlumberger
• FourQuest

National Grid Peel Ports Morgan Sindall London Bridge City

Built on owning relationships, not just owning assets

19

Integrated services - end to end asset management, not just hire

Managed services provider – case study

National Grid

• FTSE 100 company
• One of the largest investor-owned energy companies in the world
• Forecast spend of £22bn (2010-2015), reaching £31bn by 2021:
• Electricity Transmission
• Gas Transmission & Distribution

Our Contract

• Managed Services Provider, 3+1+1 years
• Minimum £6m p.a. (hire only)
• Tier One Service Provider - Asset Management
• Full MI, consolidated billing and dedicated contract management
• Partnered Services - back to back sub-contractor agreements

Next Steps

• Fully mobilise and support contract
• Undertake audit to manage National Grid’s own fleet
• Identify additional added value for National Grid

20

On track to deliver our EBITA and ROCE margins of 10% by December 2014

Summary

• Actively driving return on capital in a challenged economy and a shrinking UK

construction market:

• Revenue up 4.3%
• EBITA margin up 35.5%
• UK Hire fleet utilisation up 2.5%
• The outlook for FY14 suggests the UK economy and construction activity will

remain subdued

• However, we continue to diversify our end markets:
• over 50% of our UK work is now non-construction based
• on a run rate basis, over 7% of revenues are now based in international markets
• 28% of revenue is now non-capital service income, funding hire fleet investment
• Strong balance sheet, low gearing and strong cash generation:
• net debt/EBITDA: <1x, net debt/net assets: <1/3
• UK cash positive, funding international growth

21

23

Debt structure & headroom

£180.9m £119.7m £76.0m £39.4m £83.3m £215.0m £5.0m

Book value Borrowing Base Borrowings Total facility

Receivables 85% of eligible UK & Ireland debtors Plant & machinery 85% of eligible UK & Ireland plant & machinery Total £159.1m £75.8m unutilised facility

31 March 2013

24

Covenants

Debt Service Cover Fixed Charge Cover Leverage Covenant threshold

Not greater than 2.25x Not less than 2.1x

If availability is less than £22m, not less than 1.0x

Position at 31 Mar 13

1.0x 3.2x Not relevant

Methodology

Total Net Debt to EBITDA EBITDAR to Rent Adjusted Finance Charges (“RAFR”)

Where: EBITDAR is EBITDA before operating lease charges RAFR is net finance charges plus operating lease charges

Capex Adjusted EBITDA to Debt Service

Where: Capex Adjusted EBITDA is EBITDA less net capital expenditure less dividends Debt Service is net finance charges plus scheduled debt repayments

25

Return on capital employed

26

Service: Hire %

Hire Revenue

Hire Revenue 72% Services Revenue 28% Services Revenue

Partnered Services

27

UK & Ireland Fleet Utilisation

Variance – FY13/12